If and when panic selling occurs in stock markets, does that devalue the price of stocks and render the market almost worthless, because more and more stocks are introduced into the market (increasing supply) and there is no demand?
See the 1929 Wall Street Crash.
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Edited by Funkbrotha10: 2/13/2013 10:37:06 PMYes, when people panic sell the price of whatever they are selling drops. which then prompts more panic selling, and more price dropping....